Skip to main content

๐Ÿ’ฐ Capitalistic Model

The capitalistic economic model relies on free market conditions to drive innovation and wealth creation and regulate corporate behaviour.

Commercial business has only one intention, to make profit.

In the capitalistic economic model, there are no trade barriers:
- Healthy competition benefits all
- The given customer base will sustain a fixed number of suppliers
โ””โ”€โ”€ Surplus/unsuccessful businesses will close.

Every business needs to grow to sustain and grow

Growth is in terms of:
- Revenue, sales, market share
- Real estate assets, sites

Growth is essential to counter inflation

Every business goes through a life cycle

Finite resources and customers dictate constant renewal of gaining profit.
- Increased citis for manufacturing and increased competition through substitutes.

๐Ÿง  Click here to test your knowledge!